Human adults are more accurate at discriminating faces from their own race than faces from another race. This "other-race effect" (ORE) has been characterized as a reflection of face processing specialization arising from differential experience with own-race faces. We examined whether 3.5-month-old infants exhibit ORE using morphed faces on which adults had displayed a crossover ORE (i.e., Caucasians performed better on Caucasian faces and Asians performed better on Asian faces). In this experiment, Caucasian infants who had grown up in a predominantly Caucasian environment discriminated 100% Caucasian faces from 70% Caucasian/30% Asian morphed faces but failed to discriminate between the corresponding 100% Asian and 70% Asian/30% Caucasian faces. Thus, 3.5-month-olds exhibited evidence of ORE. These results indicate that at least by 3.5 months of age, infants have attained enough face processing expertise to process familiar-race faces in a different manner than unfamiliar-race faces. (Contains 1 table and 1 figure.)